Postage Increase: Don’t Forget Your 2-Cents Worth!

by AccountingWeb on Jan 8 2006printer friendly

The price of a stamp went up 2 cents over the weekend, in the first increase since 2002. Postage on the first ounce of first class mail is now 39 cents and 24 cents for each additional ounce. The increase follows legislation requiring the United States Postal Service (USPS) to put more than $3 billion in an escrow account this year.

“We’re trying to transform the way we do business with the public, as far as getting better automation, providing better service because right now, we’re a little behind, but we’re catching up,” Leroy Williams, a USPS supervisor told CBS. “Once we catch up, we’re going to stay ahead.”

There is no grace period for this rate hike despite the fact that many seem unaware that it was coming. Letters and items having only 37 cents of postage, not mailed before midnight on Saturday, will be returned for insufficient postage.

Estimated costs for some typical items sent through the mail include:

24 cents for a postcard

28.9 cents for household magazines weighing 13.8 ounces and presorted

60 cents for delivery confirmation

63 cents for letters to Mexico or Canada

95 cents for postal money orders

$2.40 for certified mail

$4.05 for 1 pound by Priority Mail

$14.40 for 8 ounces by Express Mail

Parcel post and advertising mail rates vary by distance and whether the items are presorted.

The USPS has introduced two new 39-cent stamps, Lady Liberty, featuring an image of the Statue of Liberty, and the U.S. Flag, UPI reports. One of the 2-cent stamps the USPS has promised to have in ample supply is a reprint of the Navajo Jewelry stamp issued in 2004, featuring a Navajo silver and turquoise necklace.